Mosvold Orders Two Newbuildings, Arranges Shipping Spinoff with Progress

In a major restructuring move, Mosvold Shipping has transferred all of its shipping interests to Danish affiliate D/S Progress. A forthcoming Extraordinary General Meeting of Progress will be asked to vote on a proposal involving the sale of ships for shares. Under the terms of the deal, Mosvold will transfer its shipping interests to Progress, against the payment of shares in the Danish company. Progress will thus take control of key Mosvold shipping investments, notably the entire capital of the English joint-stock companies Thornhope Shipping, and the group’s technical management company, Hudson Steamships. The company will also increase its stake in Nor-OBO Shipping from 20.4% to 53.1%.

The Mosvold spin-off will add an additional 262,000 dwt to the Progress fleet. The ships to be transferred from Norwegian management include five multi-purpose vessels, ranging from 15,000 to 22,000 dwt, and three handy sized bulk carriers all owned by Nor-OBO, and two bulk carriers and a multipurpose vessel owned by Thornhope. Most of the ships are trading on the spot market. The 24,700 dwt bulk carrier Mosbay has been sold recently to make way for two newbuildings just ordered at the Daewoo shipyard in South Korea. The 66,000 dwt vessels, which will cost $28.1m each, are scheduled for delivery in October 1992.

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